University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.

The following data appear in the company records for the current period:

Required:

Allocate the service department costs using the reciprocal method. (Matrix algebra is not required because there are only two service departments.) (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amounts.)

We provide you with the balance sheet of a Spanish company at the end of the year. The company carried out its accounting according to the PGC 2007. You have to analyse each of the items and specify which group of the Chart of Accounts they belong to and the specific coding that corresponds to it according to the Chart of Accounts of the General Accounting Plan to each entry.

Once all the accounts have been coded, create the closing entry for the company.

web> X Company is a merchandiser and prepares monthly financial statements. The following is its balance sheet at the beginning of July:

The following summary transactions occurred during July:

1. Sold stock to investors for $44,000.
2. Borrowed $28,000 from a bank and paid off a $10,000 bank loan.
3. Bought $8,424 of merchandise from suppliers, paying $3,293 and promising to pay the rest in August.
4. Bought equipment for $44,100 from a manufacturer, paying $4,700 and promising to pay the rest in September.
5. Paid $3,486 to suppliers that it bought merchandise from in June.
6. Sold merchandise, receiving $16,554 cash and promises from customers to pay $4,826; the merchandise that was sold cost $10,690 and was purchased earlier in July.
7. Paid $573 for rent in advance.
8. Received $3,419 from customers who purchased merchandise last month.
9. Paid wages and other miscellaneous expenses totaling $5,670.

Note: Ignore adjusting entries. 4. What was the cash balance on July 31?

5. What were total equities on July 31?

6. What was Net Income in July?

Linkin Corporation is considering purchasing a new delivery truck. The truck has many advantages over the company’s current truck (not the least of which is that it runs). The new truck would cost $55,200. Because of the increased capacity, reduced maintenance costs, and increased fuel economy, the new truck is expected to generate cost savings of $8,600. At the end of 8 years the company will sell the truck for an estimated $28,900. Traditionally the company has used a rule of thumb that a proposal should not be accepted unless it has a payback period that is less than 50% of the asset’s estimated useful life. Larry Newton, a new manager, has suggested that the company should not rely solely on the payback approach, but should also employ the net present value method when evaluating new projects. The company’s cost of capital is 8%.

Click here to view PV table.

(a)

Compute the cash payback period and net present value of the proposed investment. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). Round answer for present value to 0 decimal places, e.g. 125. Round answer for Payback period to 1 decimal place, e.g. 10.5. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Cash payback period ?

Net Present Value ?

Financial Statements of a Manufacturing Firm

The following events took place for Digital Vibe Manufacturing Company during January, the first month of its operations as a producer of digital video monitors:

1. Purchased $67,700 of materials
2. Used $52,100 of direct materials in production.
3. Incurred $77,900 of direct labor wages.
4. Incurred $109,700 of factory overhead.
5. Transferred $182,100 of work in process to finished goods.
6. Sold goods for $325,600.
7. Sold goods with a cost of $144,900.
8. Incurred $83,300 of selling expenses.
9. Incurred $36,600 of administrative expense.

Using the information given, complete the following:

a. Prepare the January income statement for Digital Vibe Manufacturing Company.

b. Determine the Materials Inventory, Work in Process Inventory, and Finished Goods Inventory balances at the end of the first month of operations.

Making decisions often involves financial and nonfinancial factors. Provide a hypothetical example from your personal life of a situation in which you would consider both financial and nonfinancial factors. What factors would be considered?

Outback Outfitters sells recreational equipment. One of the company’s products, a small camp stove, sells for $100 per unit. Variable expenses are $70 per stove, and fixed expenses associated with the stove total $144,000 per month.

Required:

1. What is the break-even point in unit sales and in dollar sales?

2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? (Assume that the fixed expenses remain unchanged.)

3. At present, the company is selling 20,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes.

4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $77,000 per month?

The general model for calculating a quantity variance is:

Multiple Choice

• Actual price × (Actual quantity of inputs used − Standard quantity allowed for output).

• Standard price × (Actual quantity of inputs used − Standard quantity allowed for output).

• (Actual quantity of inputs used × Actual price) − (Standard quantity allowed for output × Standard price).

• Actual quantity of inputs used × (Actual price − Standard price).

The following standards have been established for a raw material used to make product O84:

The following data pertain to a recent month's operations:

The direct materials purchases variance is computed when the materials are purchased.

Required:

a. What is the materials price variance for the month?

b. What is the materials quantity variance for the month?

(Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Handerson Corporation makes a product with the following standard costs:

The company reported the following results concerning this product in August.

The company applies variable overhead on the basis of direct labor-hours. The direct materials purchases variance is computed when the materials are purchased.

The variable overhead rate variance for August is:

Multiple Choice

• $825 U

• $825 F

• $1,375 F

• $1,375 U

Old Tyme Soda produces one flavor of a popular local soft drink. It had no work-in-process on October 31 in its only inventory account. During November, Old Tyme started 10,300 barrels. Work-in-process on November 30 is 1,350 barrels. The production supervisor estimates that the ending work-in-process inventory is 20 percent complete. An examination of Old Tyme’s accounting records shows direct material costs of $14,980 and conversion costs of $21,900 for November. All production is sold as it is produced. Required: a. Compute cost of goods sold for November. (Do not round intermediate calculations.) b. What is the value of work-in-process inventory on November 30? (Do not round intermediate calculations.)

Oscar Clemente is the manager of Forbes Division of Pitt, Inc., a manufacturer of biotech products. Forbes Division, which has $4.02 million in assets, manufactures a special testing device. At the beginning of the current year, Forbes invested $5.09 million in automated equipment for test machine assembly. The division’s expected income statement at the beginning of the year was as follows.

A sales representative from LSI Machine Company approached Oscar in October. LSI has for $5.07 million a new assembly machine that offers significant improvements over the equipment Oscar bought at the beginning of the year. The new equipment would expand division output by 10 percent while reducing cash fixed costs by 5 percent. It would be depreciated for accounting purposes over a three-year life. Depreciation would be net of the $600,000 salvage value of the new machine. The new equipment meets Pitt's 12 percent cost of capital criterion. If Oscar purchases the new machine, it must be installed prior to the end of the year. For practical purposes, though, Oscar can ignore depreciation on the new machine because it will not go into operation until the start of the next year.

The old machine, which has no salvage value, must be disposed of to make room for the new machine.

Pitt has a performance evaluation and bonus plan based on residual income. Pitt uses a cost of capital of 12 percent in computing residual income. Income includes any losses on disposal of equipment. Investment is computed based on the end-of-year balance of assets, net book value. Ignore taxes.

Required:

a. What is Forbes Division’s residual income if Oscar does not acquire the new machine?

b. What is Forbes Division’s residual income this year if Oscar acquires the new machine?

c. If Oscar acquires the new machine and operates it according to specifications, what residual income is expected for next year?

(Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus sign. Round your answers to the nearest whole dollars)

Swanson, Inc., manufactures an advanced swim fin for scuba divers. Management is now preparing detailed budgets for the third quarter, July through September, and has assembled the following information to assist in preparing the budget:

a. The Marketing Department has estimated sales as follows for the remainder of the year (in pairs of swim fins). The selling price of the swim fins is $21 per pair.

July 6,400 October 4,400  

August 7,400 November 3,400  

September 5,400 December 3,400  

b. All sales are on account. Based on past experience, sales are expected to be collected in the following pattern:

43% in the month of sale

48% in the month following sale

9% uncollectible

The beginning accounts receivable balance (excluding uncollectible amounts) on July 1 will be $154,000.

c.

The company maintains finished goods inventories equal to 9% of the following month’s sales. The inventory of finished goods on July 1 will be 576 pairs.

d.

Each pair of swim fins requires 4 pounds of geico compound. To prevent shortages, the company would like the inventory of geico compound on hand at the end of each month to be equal to 20% of the following month’s production needs. The inventory of geico compound on hand on July 1 will be 5,192 pounds.

e.

Geico compound costs $2.50 per pound. Crydon pays for 60% of its purchases in the month of purchase; the remainder is paid for in the following month. The accounts payable balance for geico compound purchases will be $13,400 on July 1.

Required:

1a.

Prepare a sales budget, by month and in total, for the third quarter.

1b.

Prepare a schedule of expected cash collections, by month and in total, for the third quarter. (Do not round intermediate calculations.)

2. Prepare a production budget for each of the months July through October.

3a.

Prepare a direct materials budget for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations.)

3b.

Prepare a schedule of expected cash disbursements for geico compound, by month and in total, for the third quarter. (Do not round intermediate calculations.)

Six Company sells an asset with a $1 million fair value to A Company. A Company agrees to make six equal payments, each to be paid one year apart, commencing on the date of sale. The payments include principal and 6% annual interest. What is the amount of the annual payments? can u solve this using the financial calculator method (pv= fv= n= pmt= )and is this gonna be using beginning mode (annuity due) or end mode (ordinary annuity)

On December 31, 2015, Berclair Inc. had 442 million shares of common stock and 5 million shares of 9%, $100 par value cumulative preferred stock issued and outstanding. Net income for the year ended December 31, 2016, was $1,050 million.

Also outstanding at December 31 were incentive stock options granted to executives. The options were exercisable for 30 million common shares at an exercise price of $56 per share. During 2016, the market price of the common shares averaged $70 per share.

Required: Compute Berclair's basic and diluted earnings per share for the year ended December 31, 2016.